Tankless Electric Water Heater Vs Electric Tank

The reason is demand charge.

Tankless electric water heater vs electric tank.

We rated the annual energy consumption cost excellent for a gas. The simplicity of the storage tank water heater makes for lower cost repairs when they stop functioning properly. Plus the larger electric tank will experience greater standby losses due to its greater surface area. Storage tank water heaters operate more simply than a tankless water heater which means there maintenance and repair costs are less.

However depending on your local electric utility s billing policy the tankless may be much more expensive to operate. Either a gas burner or an electric element heats the water. This is because it tends to be quite complicated to switch from electric to gas. Tankless water heaters heat water directly without the use of a storage tank.

Longer useful lives than storage tank water heaters. Propane storage tanks efficiency and smaller size can free up valuable space. Electric tankless water heaters still save homeowners around 44 per year according to the us department of energy. An electric heater is recommended when your home is already set up for an electric water heater even if you currently have a tank heater.

All else being equal the tankless unit will use less kwh electricity than the unit with the tank because the tankless does not spend energy keeping hot water on standby. Most notably a 40 gallon propane storage tank water heater can deliver the same amount of hot water as a 50 gallon electric model. An electric heater is also the better option if you re looking to set up your heater immediately without a large expense. Gas and electric tankless water heaters run more efficiently than the conventional water heaters of the same fuel type.